[RAM] RAM Ratings assigns P1(s) rating to Sunway REIT's proposed Sustainability-Linked CP Programme

RAM Ratings has assigned a P1(s) rating to Sunway Real Estate Investment Trust’s (Sunway REIT or the REIT, CCR: AA₂/Stable/P1) proposed Sustainability-Linked Commercial Papers (CP) Programme of up to RM3 bil (2026/2033) to be set up under its existing funding vehicle, SUNREIT Capital Berhad (the Issuer). The suffix (s) indicates that the Issuer, with no operations of its own, depends on payments from the REIT to meet its obligations under the proposed programme. The rating for the existing Commercial Papers Programme (2019/2026) (last affirmed at P1(s) on 6 August 2025) will be withdrawn once it matures in April 2026.

The rating reflects Sunway REIT's solid credit profile, supported by its high-quality, diversified portfolio with improved performance since the last rating review. Proceeds from the Sustainability-Linked CP Programme will mainly be used to finance investment activities of Sunway REIT and/or to refinance the borrowings of Sunway REIT and its funding vehicles.

Sunway REIT’s adjusted net property income (NPI) for FY Dec 2025 rose 15.4% y-o-y to RM661.98 mil, driven by newly acquired properties, and robust performance from Sunway Pyramid Mall and Sunway Carnival Mall. Despite increased expenses, the NPI margin remained steady at 74.0%. Stronger earnings coupled with lower debt and financing costs boosted Debt-to-Operating Profit Before Debt Interest and Tax and fixed charge cover to 7.14 and 3.22 times, respectively. With a projected increase in borrowings to fund ongoing property development activities in 2026, debt metrics may moderate but are expected to remain supportive of the current credit rating.


Analytical contacts
Lai Jing Wei 
(603) 2708 8239  
jingwei@ram.com.my

Tan Han Nee
(603) 2708 8322
hannee@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my